Q&As

What do I need to consider in promoting insurance products online?

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Published on LexisPSL on 27/11/2013

The following Financial Services Q&A provides comprehensive and up to date legal information covering:

  • What do I need to consider in promoting insurance products online?
  • Key legislation
  • Advertising online
  • What are the penalties for breaching the financial promotion regime?

What do I need to consider in promoting insurance products online?

BREXIT: 11pm (GMT) on 31 December 2020 (‘IP completion day’) marked the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. Following IP completion day, key transitional arrangements come to an end and significant changes begin to take effect across the UK’s legal regime. This document contains guidance on subjects impacted by these changes. Before continuing your research, see: Brexit and financial services: materials on the post-Brexit UK/EU regulatory regime.

The financial promotion regime is contained in section 21 of the Financial Services and Markets Act 2000 (FSMA 2000). A financial promotion is a communication made in the course of business that is an invitation or an inducement to engage in investment activity. In the UK, a person must not make a financial promotion unless they are an authorised person, the content of the communication is approved by an authorised person, or the communication is covered by an exemption. For further information on the financial promotion regime, see Financial promotion—flowchart.

Key legislation

Besides FSMA 2000 there are four other main areas of legislation/guidance to consider in respect of insurance business.

  1. the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, SI 2005/129—(see SI 2005/1529, Pt V (for exemptions))

  1. the Financial Conduct Authority’s (FCA) Perimeter Guidance Manual (PERG 8)

  1. the FCA’s Conduct of Business

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